JPI, a Dallas-based multifamily developer, is using tax-exempt municipal bonds to finance a $132 million apartment project in Denton. Construction began in June on the 461-unit development at North Bonnie Brae Street and Bronco Way. This marks JPI’s first public-private partnership using bond financing, structured through the Denton Housing Authority, which owns the land. Berkadia Affordable Housing arranged the bond financing, while JPI manages development, construction, and asset management.
JPI CEO Payton Mayes explained that this funding model helps deliver workforce housing without relying on traditional capital markets. “The capital markets have been challenging over the past few years, but this was another tool in our tool chest that we could really bring value to the municipalities,” Mayes told the outlet.
Mayes also indicated that JPI is discussing similar projects with other municipalities and expects bond-backed workforce housing deals could become more common in Texas. “As more municipalities kind of get to understand the structure … we think that more and more municipalities will favor this over some alternatives,” he said.
Through this deal, Denton Housing Authority is expected to receive $35 million in equity over ten years. Half of the units will be affordable: 35 percent for households earning up to 80 percent of area median income (AMI), 10 percent at 60 percent AMI, and 5 percent at 50 percent AMI. The remaining units will be market-rate apartments. Initial deliveries are planned for next fall, with full completion anticipated in early 2027.
Elsewhere in Denton, HL Communities—a division of Holt Lunsford—is developing workforce housing aimed at hospital workers near Texas Health Presbyterian Hospital and Texas Woman’s University. JPI currently has seven active projects under construction across Dallas-Fort Worth, including developments valued at $100 million in Haltom City and $80 million at Jefferson Ridglea Village in Fort Worth.
